Nifty is trading well above the dotted lines.
The positive inklings are primarily on backdrop of expectations of another set of relief measures being announced by the Government along with a staggered lifting of the lockdown plus helping sentiments are positive global cues. The positive catalyst still continues to be the news report that US tech giant Facebook would invest Rs 43,547 crore ($5.7 billion) in Reliance Industries.
Amidst this optimistic backdrop, Nifty will again aim to move above its key hurdles at 9389...
So, the big question for the day: Can Dalal Street March Higher? Will the said gains last??
Honestly speaking, sentiments may be improving, but they are hardly perfect. Well, renewed concerns of liquidity in the Indian debt markets have started to play spoilsport. Also, the macro-economic scenario in India remains bleak as corporates struggle to survive in the absence of any economic activity. Amplifying their woes is the current liquidity environment.
Our call of the day suggests caution on any excessive strength as we suspect gains may not last — Profit booking may set in on fears that the global shutdown could ravage the world economy. The most worrisome part is that domestic investors (DII) have turned net sellers for the first time this year in April. If Dalal Street is unable to absorb this camps’ selling pressure then investors may end up disappointed.
Technically, Nifty faces major hurdles at 9389 mark. Please note, the short term technical landscape on Nifty could shift to positive ONLY if there is lack of any follow through to Friday’s losses. So traders will strictly eye Nifty’s key support at 9057 mark for the day. Below 9057, Nifty will swiftly slip towards 8821-8851 zone.